Overview:- By analyzing the daily technical chart we can see that pair is heading north side and marked a high of 1.3252 which means it is rising up with a full of bullish momentum. Presently pair is doing very well for buyers and it is making successively higher highs and higher lows as it is trading in purely uptrend, which indicates that further rally is still awaited. The 1.3300 level is a psychological level so we will get further bullish signal above this level and a daily closing above this level will open the way towards the 1.3500 level.
Fundamental Analysis:- The GBP/USD pair has continued recovering on Tuesday to hit a daily high of 1.3284, settling not far below this last. The level, stands for the 61.8% retracement of its latest daily decline, measured between 1.3513, the high reached after UK PM Johnson’s victory on the general election, and the 1.2904 low hit after Johnson decided to limit the transition period to December 2020.
The UK will see the release this Thursday of the final Markit Manufacturing PMI for December, foreseen at 47.6 vs. the previous estimate of 47.4
Technical Analysis:- From technical prospective we can see that pair’s sustained break above 61.8% Fibonacci retracement, at 1.3282, can challenge December 16 high of 1.3423.During the quote’s run-up beyond 1.3423, the yearly top surrounding 1.3515 will be the Bull’s choice.
A short term uptrend line is lying which is providing strength on the pair and the way bulls are reacting it seems like they are not ready to stop in the early phase however we need a clean sweep of 1.3300 with a daily closing above the mentioned breakout level.
We will keep our view bullish on the pair as long as 1.3200 level remains intact. Odds are in favor of bulls and intraday bias remains bullish on pair. Pair is moving above the minor and major EMA lines which is providing us bullish signal.
The bullish crossover on MACD indicator is providing us bullish signal. .RSI has turned up into overbought territory which suggests some corrections but this correction should be taken as buying opportunity for those who have missed earlier.
What next:- The 1.3350 level is immediate resistance level followed by 1.3500 whereas 1.3150 level is strong key support level followed by 1.3100 level.
Trade idea:- Based on chart and studies above we can suggest that buy the pair around current levels 1.3240-30 target is 1.3360 and 1.3460 sl is 1.3150 level.
